Day trading strategies: the complete guide with all the advanced tactics for stock and options trading strategies. Find here the tools you will need to invest in the forex market

 Technical System 
Here’s where you describe your technical trade entry system along with the
exit strategy. I haven’t covered a lot with regard to exit strategy because the
exit or take-profit level depends on your hit rate. When designing your

---

strategy, evaluate the most common payout it gives you. See if it makes
money for you with its hit rate.
More advanced traders will include things like position sizing upon exit and
such things. As a beginner, don’t bother with partial exits. It’ll only
complicate your payout ratio calculations. Build and establish a good base,
and you’ll figure out whether you need partial exits or not.
A general rule of thumb is to aim for a payout ratio of 2. Anything below
this requires a high hit rate, which very few systems provide. When
exploring your system, remember that you can increase the hit rate by
reducing the payout. You can play around with this to see if this makes the
system more profitable for you.
 Events 
The markets have a bunch of external events that affect them, such as
earnings announcements, dividends, splits, interest rate announcements,
press conferences, and on and on. Generally speaking, you need to pay
attention to the following events:
earnings
special events pertaining to the individual stock or political
events like elections
interest rate announcements
nonfarm payrolls (NFP)
That’s it. These events are always scheduled in advance, and as a beginner,
stop trading an hour prior to the announcement and resume an hour after it
has passed. The reason is that volatility jumps like crazy, and your stops
will get triggered.

---

If you have any positions open that are close to profit, take a lower profit
just before the announcement, as long as it doesn’t affect your risk numbers
too much. Similarly, if you have a trade that is in a loss and is near its stop-
loss, you have to close the trade out just before the event.
If your trade is in the middle of the road or is even break even, ride the
event out and hope for the best. Some stocks are better than others in this
regard. Stay away from flashy companies run by Twitter-wielding CEOs
who tend to send their products into space instead of building profits. You
know who I’m talking about.
Aside from being annoying, you can bet there will be a number of
algorithms and bots tracking every character such people type into Twitter,
and all it takes for a flash tumble to occur in the stock is a typo or a rash
tweet. Stick to boring names no one has heard of, and you’ll be much better
off, no matter how much you love or hate the company.